By Rob O'Brien

Local Government Victoria failed to provide natural justice to a council CEO and a consultant from the City of Ballarat by neglecting to interview them in a 2008 investigation, according to a report by the Victorian Ombudsman. 

The Victorian Ombudsman, George Brouwer, was critical of the way the report by the Inspectors of Municipal Administration was tabled in the State Parliament without giving a right of response to all necessary parties.

The probe by the Ombudsman was launched following a complaint by Leader of the Opposition, Ted Baillieu, into a report - Investigation into Ballarat City Council - which was tabled in Parliament on 9 October 2008 by Minister for Local Government, Richard Wynne.

The report dealt with a number of allegations raised by a former City of Ballarat Councillor, Wayne Rigg and investigated by Inspectors of Municipal Administration through two inspectors from the consulting firm PriceWaterhouseCoopers.

In his complaint, Mr Baillieu raised concerns that the council’s CEO, Richard Hancock, had not been interviewed as the inspectors had been informed that he was living and working in the Middle East.

Media reports following the tabling of the report revealed that both Mr Hancock and Mr Chiodo were in fact working for the Northern Territory Government.

Mr Baillieu also complained that the inspectors did not interview Mike Chiodo, a consultant appointed during Mr Hancock’s tenure.

“My investigation has identified concerns with the process by which reports of Inspectors of Municipal Administration are finalised and tabled in Parliament,” the Ombudsman said.

“Individuals who are subject to adverse comments in such reports should have an opportunity to respond to any criticisms, and have that response taken into account before a report is finalised and, more importantly, tabled before Parliament.

“The failure to give Mr Hancock and Mr Chiodo an opportunity to respond is a failure to provide them with natural justice.”

The Ombudsman said that when a minister tables a report in Parliament, he is responsible to the minister is responsible to the Parliament and the community for any effect flowing from that tabling.

He said neither Mr Hancock nor Mr Chiodo had been provided with the opportunity to respond to the adverse comments in the report.

“Yet Local Government Victoria did not address that issue in its advice to the Minister or advise him of the possible consequences to Mr Hancock and Mr Chiodo of tabling the report,” he said.

In his recommendations Mr Brouwer suggested training for persons advising ministers in the Secretary of the Department of Planning and Community Development “regarding the tabling of reports of the requirements of natural justice”.

He also recommended the Premier and the Minister for Local Government consider legislative amendments to provide the Ombudsman with jurisdiction to investigate the administrative actions of Inspectors of Municipal Administration under the Ombudsman Act.

Read the full report: Victorian Ombudsman report tabled in Parliament on 15 April [PDF]